Moody's rates GCI notes B3

Moody's Investors Service said it assigned a B3 (LGD5) rating to GCI, Inc.'s proposed offering of senior notes. The company's other ratings and positive outlook are unchanged.

Note proceeds will be used to refinance the company's 8 5/8% senior notes due 2019.

The agency said GCI's B2 corporate family reflects the company's high leverage, its small scale, the increasingly competitive environment in which it operates, the capital intensity of the business, the company's historically shareholder-friendly financial policies and its reliance upon High Cost Fund USF support for a little over 5% of its revenues.

GCI's rating is supported by its base of recurring revenues from its position as a leading communications provider in the Alaskan market with significant market share in each of its products and its full ownership of Alaska's largest wireless network, Moody’s said.

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